Requested Amount: 1,000,000 DOT as a non-custodial provision of liquidity into the HydraDX Omnipool
Date: 08-03-24
Short Description: Strengthen DOT on-chain liquidity by providing 1,000,000 DOT as liquidity into the HydraDX Omnipool - in a decentralized and non-custodial manner, with the funds remaining under the control of the Polkadot Protocol and OpenGov.
Summary
The goal of the Polkadot Hydration Campaign is to contribute towards building an accessible, deep layer of native liquidity which, over time, will help the wider Polkadot 2.0 ecosystem flourish. This proposal should be viewed in conjunction with a parallel proposal that suggests allocating 1,000,000 DOT as liquidity incentives for ecosystem assets.
If approved, this proposal will provide 1,000,000 DOT from the Polkadot Treasury into the HydraDX Omnipool - in a decentralized and non-custodial manner, with the funds remaining under the control of the Polkadot Protocol and OpenGov.
The requested DOT would add to an existing 690k+ DOT (and 560k+ vDOT) which is already LPed into the Omnipool - these DOT were acquired by the HydraDX treasury over 2023 as well as provided by HydraDX users and liquidity providers. Being the asset with the highest trading volume in the Omnipool, deeper DOT liquidity would provide better order execution for anyone trading DOT on HydraDX. This includes those using DOT to onboard into ecosystem projects (8 ecosystem projects have LPed their tokens into the Omnipool), Treasury grant recipients, and even the Polkadot Treasury itself - which is currently using the Omnipool to diversify 460,000 DOT and another 3.4M DOT enacted just this week.
Please read the full proposal here.
The previous discussion can be found here - the main change is the increase from 500,000 DOT to 1,000,000 DOT based on feedback from DOT holders.
Hello from Polkadotters,
we are in favor of this proposal, as it benefits users the most. And also those funds will remain under the control of the Polkadot Protocol and OpenGov.